Asked by
Michelle Tanaka
on Nov 28, 2024
Verified
An undisclosed principal is not liable to a third party for failing to perform a contract entered into by an agent acting within the scope of his or her authority.
Undisclosed Principal
A situation in an agency relationship where the identity of the principal is not revealed to the third party by the agent.
Liable
Legally responsible or answerable for an action or a situation.
Scope of Authority
The range or extent of power that an individual or organization legally has to make decisions or take action.
- Identify the variations between disclosed, partially disclosed, and undisclosed principals in terms of their liabilities.
Verified Answer
LG
Learning Objectives
- Identify the variations between disclosed, partially disclosed, and undisclosed principals in terms of their liabilities.